Parliament agrees US$60m loan from ADB to upgrade electricity networks

Parliament agrees US$60m loan from ADB to upgrade electricity networks

Published on Saturday, 09 November 2013 16:01

Myanmar parliament has agreed on principal with the Ministry of Electric Power to take a US$60 million loan from Asian Development Bank for upgrading electricity distribution networks across the country.

The progress of the project must be reported for approval to the parliament once every four months, according to Parliament Speaker Thura Shwe Mann.

The topic was raised during the parliamentary session on November 7 after President Thein Sein sent a message about the loan to the parliament. Nine MPs discussed different opinions although the parliament finally decided in favour of the borrowing.

During the parliamentary discussion, MP Khine Maung Yi from Ahlon Constituency argued against taking the loan by pointing out the huge size of accumulated debts responsible by the parliament, the interest of the loan that will put burden on the public, and the uncertainties about the outcomes of the project.

Dr Myint Kyi from No. (8) Constituency of Yangon Region also called for reconsidering the plan to employ 64 foreign consultants and 150 local consultants to advise on the project. Dr Myint Kyi said that clear explanations are required for the purchases involved in the project.

Aung Than Oo, deputy minister for electric power, gave the explanation on the project at the parliament. Speaker Thura Shwe Mann said the parliamentary committees need to examine the project's costs, but the project was agreed on principle. Progress must be reported to the parliament once every four months, he added.

Regarding the upgrading of electricity distribution networks, Myanmar government has planned to use US$13.426 billion from the state budget in addition to this loan.

http://www.information.myanmaronlinecentre.com/parliament-agrees-us60m-loan-from-adb-to-upgrade-electricity-networks/